•   What are the NPV, PI, and IRR values for projects C and D? 
• Which project should be chosen? 
• Does the choice change if capital constrains are taken into account? and if so, what return on the marginal $12,000 not used in Project C? 
• would make the two project equally attractive?

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On January 11, 2023, the finance committee of Mada Plastic Molding Company (MPMC) met to evaluate eight capital-budgeting projects. They had four mutually exclusive profit projects to consider. On January 11, 2023, the finance committee of Mada Plastic Molding Company (MPMC) met to evaluate eight capital-budgeting projects. They had four mutually exclusive profit projects to consider.

Answer rating: 100% (QA)

To calculate NPV Net Present Value PI Profitability Index and IRR Internal Rate of Return for projects C and D we need to use the following formulas 1 ... View the full answer